Public Sector Wage Growth Slows to 6.6%
Australian Bureau of Statistics data shows public sector pay rises trimmed across Commonwealth, state and local sectors in 2025-2026.
Updated on Nov. 8, 2026 in Employment
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Australian public sector wage growth slowed to 6.6% in the 2025-2026 financial year, down from 7.8% the previous year. The Australian Bureau of Statistics released the dataset late last week, with pay rises across Commonwealth, state and local public sectors all trimming markedly.
Why it matters
The slowdown signals a shift in public sector pay outcomes across all tiers of government. Because the figures are drawn from hard payroll data rather than samples, they provide a firmer basis for assessing how public sector earnings are tracking nationally.
The Australian Bureau of Statistics dataset records public sector wage growth at 6.6% in 2025-2026, compared with 7.8% in 2024-2025. The reasons for the slowdown and its likely persistence are not addressed in the source data.
The players
Australian Bureau of Statistics
The Australian Bureau of Statistics is the federal government agency responsible for compiling official statistics on the Australian economy and population.
The details
The Australian Bureau of Statistics released its public sector employment and earnings growth dataset late last week. The figures show pay rises trimmed markedly across Commonwealth, state and local public sectors.
Timeline
2024-2025 financial year: public sector wage growth was 7.8%.
2025-2026 financial year: public sector wage growth slowed to 6.6%.
Late last week: the Australian Bureau of Statistics released the dataset.
Market Dynamics
The Australian Bureau of Statistics now bases its public sector wage growth measurements on hard payroll data rather than samples. This methodological basis places the 6.6% figure for 2025-2026 on firmer ground than earlier sample-based estimates.
Slower public sector wage growth means the pay rises received by public servants across Commonwealth, state and local governments are smaller than in the previous financial year. Workers in these sectors should expect pay increases to be more modest in the 2025-2026 period than they were in 2024-2025.
The takeaway
Public sector pay growth is easing, and the move to payroll-based measurement makes these figures more reliable for tracking future changes. Readers tracking their own pay should compare it against the 6.6% national figure for 2025-2026.
Further reading
Explore more on Employment trends affecting Australian workers and public sector pay.
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Do you think public sector wages are a major driver of Australia's inflation?
